CHIEF INVESTMENT OFFICE

Capital Market Outlook

August 7, 2023

All data, projections and opinions are as of the date of this report and subject to change.

IN THIS ISSUE MACRO STRATEGY 

Macro Strategy—Reshoring: Some Inconvenient Truths and Unintended Joseph P. Quinlan
Consequences: The tangible effects of reshoring are plain to see—U.S. manufacturing Managing Director and Head of CIO Market
Strategy
construction is soaring, foreign direct investment inflows are rising, battery and chip plants
are sprouting across the country. However, the manufacturing supercycle has already Lauren J. Sanfilippo
exposed some weaknesses and inconsistencies in the U.S. economy. Director and Senior Investment Strategist

Simply put, America needs more workers, a more secure and reliable source of MARKET VIEW 
metals/minerals, steadfast trading partners, the avoidance of a global subsidy war, improving
Ehiwario Efeyini
relations with China, and greater supply chain diversification as opposed to concentration. Director and Senior Market Strategy Analyst
The potential downsides of reshoring: excess capacity, rising costs, output delays, falling
profit margins and deteriorating trade conditions. THOUGHT OF THE WEEK 
Market View—How Might El Nino Affect Global Markets?: This past July saw average Kirsten Cabacungan
global temperatures reach record levels. Extreme weather around the world has led to Vice President and Investment Strategist
wildfires in Canada and Greece, caused heatwaves across the U.S., China, Italy and Spain,
and prompted the United Nations to warn that the Earth has now entered an era of “global MARKETS IN REVIEW 
boiling.”
Data as of 8/7/2023,
Scientists widely attribute the trend toward higher global temperatures to anthropogenic and subject to change
climate change, but the El Nino phenomenon could exacerbate these temperature
increases on a cyclical basis later this year.
Portfolio Considerations
Thought of the Week—The Lopsided Bull is Standing On All Legs Now: The
narrowness of the equity market that dominated the narrative in the first half of the year Given the level of portfolio drift in
has not led to the major market decline some investors feared. Instead, the rally has certain areas, we are actively
broadened out as more areas of the market participate in the uptrend. rebalancing portfolios, and, where
appropriate, we are lengthening
While broader market breadth is welcome news for the foundation for the longer-term bull duration in Fixed Income. We are
market, investors should continue to monitor possible headwinds that could leave the transitioning to a new
market vulnerable to potential volatility ahead, including weaker seasonality, elevated
macroeconomic regime with overall
absolute valuations, bullish sentiment shifting to extreme levels and lagged effects of
risk still elevated amid slowing
monetary policy tightening.
earnings, higher interest rates and
geopolitical uncertainty. We believe
that as this transition firmly takes
hold, building diversified portfolios
across and within asset classes,
including alternatives, for qualified
investors, is imperative. We continue
to remain neutral Equities and Fixed
Income relative to our strategic
benchmarks.

Trust and fiduciary services are provided by Bank of America, N.A., Member FDIC and a wholly owned subsidiary of
Bank of America Corporation (“BofA Corp.”).
Investment products:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Please see last page for important disclosure information. 5857751 8/2023
MACRO STRATEGY
Reshoring: Some Inconvenient Truths and Unintended Consequences
Joseph P. Quinlan, Managing Director and Head of CIO Market Strategy
Lauren J. Sanfilippo, Director and Senior Investment Strategist
First the good news: The mega-legislative programs of the Biden Administration (the
Infrastructure and Jobs Act, the Inflation Reduction Act [IRA], and CHIPS and Science Act) Investment Implications
have triggered an avalanche of new investment in such areas as solar panels, electrical
vehicles, semiconductors, charging stations and related facilities. Reshoring presents its own
Factory construction outlays, for instance, have soared over the past year and totaled $196 billion challenges, but this is the time to
in June, up 80% from the same period a year ago (Exhibit 1A). According to Bloomberg, since the look to gain more exposure to
passage of the IRA just over a year ago, some $72 billion has been sunk in electrical vehicle infrastructure-related industrial
investments, with investment in battery capacity leading the way. Meanwhile, and according to companies and leaders in
industry sources, nearly 50 new semiconductor projects are underway in the U.S. in response to renewables (solar, wind, electrical
the CHIPS and Science Act. And finally, and not to be left behind, foreign firms sunk some $5.3 vehicles, biomass) and the required
billion into new U.S. greenfield projects last year, a four-fold increase from the year before. infrastructure behind each
Now the bad news: America’s manufacturing renaissance could either be delayed or derailed by renewable energy source. Leaders
mounting structural headwinds and by some negative unintended consequences. in electricity distribution, charging
One headwind lies with the tight U.S. labor market and lack of U.S. skilled labor. According stations and batteries, as well as
to the Semiconductor Industry Association, the U.S. is woefully short of the engineers, low-carbon hydrogen, biomethane
computer scientists and technicians needed to drive more semiconductor-related production in and advanced biofuels should be
the U.S. The future demand for these workers far outstrips supply, as evident in Exhibit 1B.
considered for portfolios. Ditto for
Meanwhile, the lack of labor goes beyond semiconductors. America needs workers not just leaders in low-carbon technologies
in white lab coats but also in hard hats—think construction and manufacturing workers. At and leaders in transmission
precisely the moment when the nation is in hyper buildout mode, the U.S. construction
technologies.
industry is lacking some 374,000 construction workers, according to the Job Opening and
Labor Turnover Survey report from the Bureau of Labor Statistics. Meanwhile, the number
of job openings among manufacturing workers was 582,000 in June. The upshot of these
shortages: delayed projects and rising wages. So severe is the labor crunch that the
world’s leading semiconductor manufacturer, Taiwan Semiconductor Manufacturing
Company, announced last month that, due to labor shortages, the company’s plant in
Arizona would not be open in late 2024, as planned, but sometime in 2025.
A second headwind lies with the supply of critical metals and minerals—or the lack
thereof. The inconvenient truth is that the U.S. lacks a secure domestic supply of lithium,
nickel, graphite and other critical minerals needed to scale up the production of solar
panels, wind turbines, semiconductors and electrical vehicles.
Indeed, according to the U.S. Geological Survey, America is 100% reliant on graphite and
manganese imports, 70% per cobalt, and 50% net import reliant on lithium and nickel. The
U.S. is also significantly global-dependent on other metals/minerals like uranium, rare earth
minerals, rubidium, cesium, hafnium and many other minerals. The list goes on—according
to the U.S. Geological Survey 2023 Minerals Commodity Summaries report, the U.S. is now
more than 50% reliant on 51 foreign minerals, up from 47 from the prior report.
What’s more, when it comes to processing and refining these resources, most roads lead through
China. The latter’s processing infrastructure—think smelters, refiners, cracking activities,
chemicals and related capabilities—is second to none on a global scale and represents a
potentially dangerous chokepoint given that U.S.-Sino bilateral relations are at a decades low. To
this point, U.S. imports of lithium-ion batteries from China more than doubled in 2022, to $9
billion, accounting for 12.5% of total U.S. lithium imports. The U.S. also relied on China for around
80% of nickel, graphite and other key minerals used in electrical vehicles last year.1
In a nutshell, China holds the “commanding heights” when it comes to processing and refining
metals and minerals that are critical to America’s reshoring push. The U.S., and the world, were
reminded of this fact in July, when China announced export restrictions on gallium and
germanium—two chemicals used in the production of solar panels and semiconductors. A final
note: Since no American-owned companies have the capacity to enrich uranium, roughly one-
third of enriched uranium used in the U.S. is imported from none other than Russia. 2

1
“U.S. Dependence on China for Lifesaving Drugs Grows,” Nikkei Asia, August 2, 2023.
2
“Despite War, Paying Russia for Uranium,” New York Times, June 14, 2023.

2 of 8 August 7, 2023 – Capital Market Outlook RETURN TO FIRST PAGE

A third factor to consider: America’s muscular industrial policies have not gone unnoticed
around the world; neither have they gone uncontested. U.S. policies have triggered a global
industrial subsidy race, with the European Union, Germany, France, Japan, Canada, the
United Kingdom and a handful of other nations offering their own subsidies and incentives
to attract capital investment and/or to keep local firms from decamping for the U.S.
According to data from the Global Trade Alert group, the world recorded more than 50,000
subsidies and other related state interventions in 2022 alone. There is a bull market in
global subsidies, in other words, that puts at risk global investment and trade flows, and
the attendant benefits like global earnings growth. As noted by one Canadian policymaker,
the IRA is “a black hole sucking investment into the United States.” 3
U.S. industrial policies, to say the least, have irked our major trading partners at a time when
Washington is trying to align the interests of the West against Russia and China. And by spurring
a massive surge in production—one surge driven by national politics, not profits—the risk is that
in the not-too-distant future, the world will be awash in semiconductors, electrical batteries,
solar panels and other subsidized goods. The resulting bubble in global capacity would do
nothing but create economic inefficiencies and hammer the profit margins of numerous firms.
A final caveat to the reshoring theme is this: As noted by the World Bank and International
Monetary Fund (IMF), the goal of boosting domestic production, increasing economic self-
sufficiency and reducing foreign supplies can actually hurt, not help, a nation’s ability to
adapt or adjust to an external shock. A home bias, i.e., reshoring, concentrates production
and runs the greater risks of supply disruptions, volatile growth and rising costs. Per the
advice of the IMF, “resilience to shocks may be gained by further diversification of inputs
across countries and by making inputs from different countries more substitutable.”
According to the IMF, a diversified supply source means less concentration, greater
choices in inputs, reduced volatility and better overall economic growth prospects. 4
In other words, don’t put all your productive capacity into one basket, but the U.S., China
and many other nations are tacking the other way.
What’s it all mean?
We believe the U.S. is in the early stages of a manufacturing supercycle pivoting around
renewable energy, electrical vehicles and batteries/charging stations, and semiconductors in
addition to rising spending in more traditional areas like ports, highways, grids, airports and the
like. The uber public policies of the Biden administration are reaping tangible results.
However, it’s important for investors to realize that it won’t be smooth sailing. The
manufacturing boom in the U.S. has exposed some glaring weaknesses and
inconsistencies in the U.S. economy and policy architecture. America needs more workers,
metals/minerals, steadfast trading partners and diversified supply chains. All of these
inputs will be key to the future growth and potential of U.S. corporate earnings.
Exhibit 1: Build It, But Will They Come?
1A) Spending on Construction of Manufacturing Facilities up 80% from a year ago. 1B) A Flood of Chips, but not enough Chip Experts: Graduates in semiconductor-related
fields fall short of demand.

Manufacturing Construction Demand by 2030 Supply

Billion of $, Seasonaly Adjusted Annual Rate
200 134.3
Technicians
175 107.9
150
125 69.0
Engineers
100 41.7
75
50 34.5
Computer scientists
25 21.1
0
0 20 40 60 80 100 120 140 160
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023

Number of Graduates in thousands

Exhibit 1A) Source: U.S. Census Bureau. Data as of June 2023. Exhibit 1B) Sources: SIA; Bloomberg. Data as of August 3, 2023.

3
“Subsidy Wars Heat Up with U.S. Allies Forced to Pay Up or Lose Out,” Bloomberg, July 25, 2023.
4
“Global Trade and Value Chains During the Pandemic,” International Monetary Fund, April 2022.

3 of 8 August 7, 2023 – Capital Market Outlook RETURN TO FIRST PAGE

MARKET VIEW
How Might El Nino Affect Global Markets?
Ehiwario Efeyini, Director and Senior Market Strategy Analyst
This past July saw average global surface air temperatures reach a record 17°C (63°F),
0.2°C to 0.3°C above the previous record set in 2019 and roughly a full degree above the Investment Implications
historical average since 1880. Extreme weather has led to wildfires in Canada and Greece, A new El Nino phase is likely to
caused heatwaves across the U.S., China, Italy and Spain, and prompted the United Nations increase the near-term pressure on
to warn that the Earth has now entered an era of “global boiling.” Scientists widely farmers to adopt more efficient
attribute the trend toward higher global temperatures to anthropogenic climate change, techniques and new technologies
but the El Nino phenomenon could exacerbate these temperature increases on a cyclical
that can increase agricultural
basis later this year.
yields. Within global markets, this
El Nino is the warm phase of the El Nino Southern Oscillation (ENSO) cycle (the cool should mean not only higher prices
phase is known as La Nina), a natural process that occurs every two to seven years, with for agricultural commodities, but
the warming and cooling of the Pacific Ocean surface to +/- 0.5°C above or below average also more demand for fertilizer,
for a period of at least five months. According to the World Meteorological Organization, pesticides and genetically modified
there is a 90% probability that an El Nino event will occur in the second half of 2023, with seeds. Equities along the
at least moderate strength and will likely extend into 2024, pushing average air
agribusiness supply chain,
temperatures higher by releasing ocean heat into the atmosphere. El Nino has historically
including machinery, chemicals and
exerted the greatest effect on countries either side of the equatorial Pacific, typically
processing, also stand to be
making for drier conditions in southeast Asia and Africa, and increased rainfall in the
southern U.S. and large parts of Latin America (Exhibit 2). beneficiaries.

Exhibit 2: El Nino: Regional Effects And Risks.

Region Effect Risks

Asia Pacific Drier than normal Drought, Water stress

India Drier than normal Drought, Risk to monsoon rains

Peru, Chile, Argentina Wetter than normal Flooding

Tropical storms, hurricanes in eastern
Central America, Northern Brazil Drier than normal, Tropical cyclones
Pacific, fewer in Atlantic
Southern U.S. Wetter than normal Flooding, Landslides

Australia Drier than normal Drought, Wildfires

Southern Africa Drier than normal Drought

Source: Absolute Strategy Research. Data as of July 2023.

For investors, El Nino will need to be watched for its effect on markets through at least
three main channels: commodity price inflation, interest rates and the balance of
payments, particularly in the emerging world. The biggest of these is likely to be
commodity price inflation.
On a global basis, higher temperatures could lead to reduced meat output from a rising
incidence of heat stress for livestock. In Latin America, higher levels of rainfall could mean
greater energy output from hydropower and could therefore actually lead to lower power
prices in Brazil and Colombia, which respectively derive 55% and 70% of their electricity
production from hydro. But at the same time, the higher risk of flooding could reduce
mining output of base and precious metals such as copper, silver and lithium in Peru and
Chile.
The most significant effect is likely to fall on agricultural commodities. Increased
incidence of drought and water stress across the Asia-Pacific could lead to lower
production and upside price risks across a range of food categories such as sugar, cocoa,
coffee and rice. As a result, local prices for these groups may be pushed higher, an effect
that would only be amplified for major importing regions such as the Middle East and
North Africa (Exhibit 3). And should export restrictions also be introduced in these markets
as countries such as India have done in the past, this would only further exacerbate the
underlying price shock.

4 of 8 August 7, 2023 – Capital Market Outlook RETURN TO FIRST PAGE

Exhibit 3: Agricultural Commodity Self-Sufficiency By Region.
Domestic Production / Total Domestic Supply
Green = 100% self-sufficient, Red = less than 50% self-sufficient, White = 50%-99% self-sufficient.
Wheat Corn Soybeans Sugar Cocoa Coffee Rice
Asia
China 98 98 26 99 46 88 100
India 100 100 82 101 67 226 103
Korea 0 1 15 45 39 19 97
Indonesia 0 97 35 92 102 244 99
Malaysia 0 1 14 50 102 94 83
Thailand 0 92 13 106 12 75 118
Philippines 0 95 13 95 41 20 91
Vietnam 0 30 14 99 0 1026 109
Latin America
Brazil 48 169 256 95 95 310 102
Mexico 44 65 18 72 72 150 52
Argentina 218 273 120 19 19 0 125
Chile 55 29 12 0 0 19 67
Peru 9 28 0 146 146 258 96
Colombia 0 19 22 104 104 446 96
MENA
Saudi Arabia 15 4 15 48 0 29 1
Egypt 45 48 14 100 8 0 95
UAE 0 6 25 55 0 39 9
Kuwait 0 6 0 0 0 0 0
Tunisia 44 0 9 49 55 0 0
Jordan 3 3 0 4 0 0 0
Morocco 51 1 1 92 12 21 75

Source: Capital Economics. Data as of July 2023. Domestic supply is domestic production plus net imports.

For import-dependent countries in the Middle East, North Africa (MENA) and parts of Asia,
the need for governments to subsidize higher prices for key food staples such as wheat
and corn may have the additional effect of aggravating fiscal and external imbalances.
Egypt and the Philippines, for example, currently have weak external positions, with the
majority of their combined domestic wheat and corn supply imported. A further
deterioration in these external positions could leave these markets more vulnerable to
higher domestic and global interest rates.
Unlike in developed markets, where food comprises only 10% to 15% of the consumer
basket and where retail and processing costs dampen the passthrough to final prices from
the underlying commodity, food generally makes up a 30%-plus share of the consumer
price index across Africa and south Asia with less insulation from these other costs. Higher
agricultural commodity prices driven by El Nino could therefore raise household inflation
expectations in large parts of the emerging world, potentially pushing back the interest
rate cuts expected by several emerging market central banks in these regions in the
second half of 2023.
Agricultural resource scarcity remains one of our key long-term investment themes, and
the onset of El Nino later this year would only pull forward some of the expected market
effects from this longer-term trend. In our view, key structural drivers of higher food
prices will include: a near-2 billion person increase in the global population by 2050; an
expanding global consumer class, meaning more demand for higher-protein diets;
declining availability of arable land due to urbanization, livestock rearing and increased
competition from biofuels; water scarcity (agriculture accounts for by far the largest share
of global water use at roughly 70%) and climate change. And by interacting with these
underlying forces, a new El Nino phase is likely to increase the near-term pressure on
farmers to adopt more efficient techniques and new technologies that can increase
agricultural yields at home while helping to meet demand from importer countries around
the world.
Within global markets, this should mean not only higher prices for agricultural
commodities, but also more demand for products that can boost yields such as fertilizer,
pesticides and genetically modified seeds. Equities along the agribusiness supply chain,
including machinery, chemicals and processing also stand to be beneficiaries.

5 of 8 August 7, 2023 – Capital Market Outlook RETURN TO FIRST PAGE

THOUGHT OF THE WEEK
The Lopsided Bull is Standing On All Legs Now
Kirsten Cabacungan, Vice President and Investment Strategist
July marked the fifth consecutive month with the S&P 500 in the green, extending its gain Investment Implications
to 18% year-to-date and 26% from the October low. 5 The narrative in the first half largely
We maintain our balanced
revolved around the “Magnificent Seven,” seven large-cap Technology and Communication
approach to portfolio construction
Services stocks that drove 100% of the index’s advance from the start of the year through
and continue to look for signs that
May and led the S&P 500 into a new bull market. 6 Investors piled into the group as the
generative artificial intelligence frenzy stoked enthusiasm over future profits and their this bull market is sustainable,
higher-quality fundamental and defensive characteristics appeared attractive as including an improved fundamental
uncertainty spiked during the regional bank crisis and debt ceiling negotiations. But the backdrop and a bottom in earnings.
narrowness of the equity market did not lead to the market decline some investors feared, We would use any period of
and instead the rally has only broadened out. The equal-weighted S&P 500 that trailed the weakness in the coming months as
market-capitalization weighted index for the first several months of the year outperformed an opportunity to rebalance
over the last two (Exhibit 4A). And now 70% of S&P 500 stocks are trading above their portfolios on a dollar-cost
200-day moving average, a big improvement from the 50% at the end of 2022 and a sign averaging basis.
of more widespread and long-term support for the uptrend. 7
Even further, an Equity sector rotation has come underway. While every S&P 500 sector
gained in June and July, it was the first-half laggards that led the advance with
economically sensitive sectors including Materials, Industrials, Energy and Financials
staging a nice comeback (Exhibit 4B). Greater participation has been a welcome sign that
a more solid foundation may be forming for this bull, but not all headwinds have
dissipated. Weaker seasonality may come into play as the S&P 500 tends to be up only
58% of the time in August on an average return of 0.67% and up only 44% of the time in
September on an average return of -1.16%. 8 Absolute valuations have swelled relative to
last year with the S&P 500’s forward price-to-earnings ratio above its long-term average,
raising concerns over an extended market. Sentiment measures, typically contrarian
indicators, have flipped bullish with optimism readings posting an eighth straight week
above the long-term average. 9 And while the economy has proven more resilient than
originally expected and a soft landing more likely now, Equities could remain vulnerable to
possible tests ahead as the full effects of the aggressive monetary policy tightening are
felt. For now, we continue to emphasize staying balanced.
Exhibit 4: Narrowness In The Equity Market Is Broadening Out.
4A) The Equal-Weighted S&P 500 Is Improving. 4B) First-Half Sector Laggards Led the Way in June and July.
Price Return Price Return Jan-May Jun-Jul
S&P 500 S&P 500 Equal-Weighted
40%
12% 11.1% 33.3% 32.2%
9.8% 30%
10% 8.9%
20% 18.2%
8% 9.8% 14.7% 14.3% 14.5% 14.2%
9.4% 9.5% 11.5%
10% 8.9% 4.9% 6.1% 5.1%
6% 3.9%
0%
4% -1.7% -2.8% -2.8% -3.8%
-10% -6.3% -7.6% -8.5%
2% -12.9%
-20%
Health Care
S&P 500

Communication

Discretionary

Industrials

Consumer

Real Estate

Financials

Energy
Materials

Utilities
Information
Technology

0%
Consumer

Staples
Services

-2% -1.4%
Jan-May Jun-Jul

Source: Bloomberg. Data as of July 31, 2023. Past performance is no guarantee of future results. Please refer to index definitions at the end of this report. It is not possible to invest directly in
an index. Performance results are extremely short term and do not provide an adequate basis for evaluating performance potential over varying market conditions or economic cycles.

5
Bloomberg. Data as of August 2, 2023.
6
BofA Global Research. Data as of July 2023.
7
Bloomberg. Data as of August 2, 2023.
8
BofA Global Research. Data as of August 1, 2023.
9
American Association of Individual Investor Sentiment Survey. Data as of July 27, 2023.

6 of 8 August 7, 2023 – Capital Market Outlook RETURN TO FIRST PAGE

MARKETS IN REVIEW

Equities
Total Return in USD (%) Economic Forecasts (as of 8/4/2023)
Current WTD MTD YTD 2022A Q1 2023A Q2 2023A Q3 2023E Q4 2023E 2023E
DJIA 35,065.62 -1.1 -1.4 7.0 Real global GDP (% y/y annualized) 3.6 - - - - 3.0
NASDAQ 13,909.24 -2.8 -3.0 33.5 Real U.S. GDP (% q/q annualized) 2.1 2.0 2.4 2.0 1.5 2.1
S&P 500 4,478.03 -2.3 -2.4 17.8 CPI inflation (% y/y) 8.0 5.8 4.0 3.5 3.2 4.1
S&P 400 Mid Cap 2,681.58 -1.3 -1.7 11.4 Core CPI inflation (% y/y) 6.1 5.6 5.2 4.3 3.8 4.7
Russell 2000 1,957.46 -1.2 -2.3 12.1 Unemployment rate (%) 3.6 3.5 3.5 3.7 3.8 3.6
MSCI World 2,986.54 -2.3 -2.5 16.0 Fed funds rate, end period (%) 4.38 4.88 5.13 5.63 5.63 5.63
MSCI EAFE 2,143.22 -2.4 -2.5 12.4
MSCI Emerging Markets 1,018.02 -2.4 -2.7 8.4 The forecasts in the table above are the base line view from BofA Global Research. The Global Wealth & Investment
Management (GWIM) Investment Strategy Committee (ISC) may make adjustments to this view over the course of the
Fixed Income† year and can express upside/downside to these forecasts. Historical data is sourced from Bloomberg, FactSet, and
Haver Analytics. There can be no assurance that the forecasts will be achieved. Economic or financial forecasts are
Total Return in USD (%)
inherently limited and should not be relied on as indicators of future investment performance.
Current WTD MTD YTD A = Actual. E/* = Estimate.
Corporate & Government 4.86 -0.53 -0.69 1.42 Sources: BofA Global Research; GWIM ISC as of August 4, 2023.
Agencies 4.91 0.09 0.05 1.87
Municipals 3.72 -1.26 -1.25 1.79
U.S. Investment Grade Credit 4.91 -0.59 -0.72 1.29 Asset Class Weightings (as of 7/11/2023) CIO Equity Sector Views
International 5.55 -0.79 -1.02 2.51 CIO View CIO View
High Yield 8.51 -0.36 -0.57 6.22 Asset Class Underweight Neutral Overweight Sector Underweight Neutral Overweight
90 Day Yield 5.40 5.41 5.40 4.34
neutral yellow

Equities
Overweight green

    Healthcare    
2 Year Yield 4.76 4.87 4.88 4.43
Slight overweight green

U.S. Large Cap

Slight overweight green

    Energy    
10 Year Yield 4.03 3.95 3.96 3.87 U.S. Mid Cap
Slight overweight green

   
Slight overweight green

30 Year Yield 4.20 4.01 4.01 3.96 neutral yellow

Utilities    
U.S. Small-cap    
Slight underweight orange Consumer Neutral yellow

   
International Developed     Staples
Commodities & Currencies Emerging Markets
Neutral yellow

    Information Neutral yellow

   
Total Return in USD (%) Neutral yellow

Technology
Fixed Income    
Commodities Current WTD MTD YTD
U.S. Investment- slight overweight green
Communication Neutral yellow

   
Bloomberg Commodity 237.91 -1.1 -1.3 -3.2    
grade Taxable Services
WTI Crude $/Barrel†† 82.82 2.8 1.2 3.2 International
neutral yellow

    Industrials
Neutral yellow

   
Gold Spot $/Ounce†† 1942.91 -0.8 -1.1 6.5 Slight underweight orange

Global High Yield Taxable

Neutral yellow

    Financials    
Total Return in USD (%) U.S. Investment Grade
slight underweight orange
Slight underweight orange

    Materials    
Prior Prior 2022 Tax Exempt slight underweight orange

U.S. High Yield Tax Exempt

Slight underweight orange

Real Estate    
Currencies Current Week End Month End Year End    

EUR/USD 1.10 1.10 1.10 1.07 Alternative Investments* Consumer Underweight red

   
Discretionary
USD/JPY 141.76 141.16 142.29 131.12 Hedge Funds
USD/CNH 7.19 7.15 7.15 6.92 Private Equity
Real Estate
S&P Sector Returns Tangible Assets /
Commodities
Energy 1.2% Cash
Consumer Discretionary -0.2%
*Many products that pursue Alternative Investment strategies, specifically Private Equity and Hedge Funds, are available
Financials -0.8% only to qualified investors. CIO asset class views are relative to the CIO Strategic Asset Allocation (SAA) of a multi-asset
Industrials -1.8% portfolio. Source: Chief Investment Office as of July 11, 2023. All sector and asset allocation recommendations must be
Consumer Staples -1.9% considered in the context of an individual investor’s goals, time horizon, liquidity needs and risk tolerance. Not all
Materials -2.0% recommendations will be in the best interest of all investors.
Healthcare -2.1%
Real Estate -2.2%
Communication Services -2.8%
Information Technology -4.1%
Utilities -4.6%
-5% -4% -3% -2% -1% 0% 1% 2%

Sources: Bloomberg; Factset. Total Returns from the period of

7/31/2023 to 8/4/2023. †Bloomberg Barclays Indices. ††Spot price
returns. All data as of the 8/4/2023 close. Data would differ if a
different time period was displayed. Short-term performance shown
to illustrate more recent trend. Past performance is no guarantee
of future results.

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Index Definitions
Securities indexes assume reinvestment of all distributions and interest payments. Indexes are unmanaged and do not take into account fees or expenses. It is not possible to invest
directly in an index. Indexes are all based in U.S. dollars.
S&P 500 Index is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.
Equal-weighted S&P 500 Index includes the same constituents as the capitalization weighted S&P 500, but each company in the S&P 500 EWI is allocated a fixed weight - or
0.2% of the index total at each quarterly rebalance.
Market-capitalization weighted S&P 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. The index actually has 503
components because three of them have two share classes listed.
Consumer price index an index of the variation in prices paid by typical consumers for retail goods and other items.

Important Disclosures
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The Chief Investment Office (“CIO”) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions
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investors.
Asset allocation, diversification, rebalancing and dollar cost averaging do not ensure a profit or protect against loss in declining markets.
Keep in mind that dollar cost averaging cannot guarantee a profit or prevent a loss. Since such an investment plan involves continual investment in securities regardless of fluctuating price levels,
you should consider your willingness to continue purchasing during periods of high or low price levels.
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vice versa. Bonds are subject to interest rate, inflation and credit risks. Treasury bills are less volatile than longer-term fixed income securities and are guaranteed as to timely payment of principal
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risk, economic changes and the impact of adverse political or financial factors.
Alternative investments are speculative and involve a high degree of risk.
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potential but also higher loss potential. Changes in economic conditions or other circumstances may adversely affect your investments. Before you invest in alternative investments, you should
consider your overall financial situation, how much money you have to invest, your need for liquidity, and your tolerance for risk.
Nonfinancial assets, such as closely held businesses, real estate, fine art, oil, gas and mineral properties, and timber, farm and ranch land, are complex in nature and involve risks including total loss
of value. Special risk considerations include natural events (for example, earthquakes or fires), complex tax considerations, and lack of liquidity. Nonfinancial assets are not in the best interest of all
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or estate planning strategy.
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